An anonymous director reports

LARGO PROVIDES FINANCIAL, OPERATIONAL AND COMMERCIAL UPDATES

Largo Inc. has provided an update on its financial debt restructuring, operational improvement initiatives and recent commercial developments.

Financial update and debt restructuring progress

Largo executed a definitive debt restructuring agreement with Caixa Economica Federal on Sept. 11, 2026. The agreement forms part of the company's broader debt restructuring process with its Brazilian bank lenders and is consistent with the binding term sheet previously disclosed by Largo on Aug. 20, 2026. Similar definitive agreements are expected to be executed with the remaining banks in the near term with definitive security and intercreditor documentation.

The company has also extended the maturity of its $6.0-million (U.S.) promissory note with ARG from February, 2027, to February, 2028. The extension maintains the terms previously announced by the company on Aug. 11, 2025, subject to an extension fee equal to 1 per cent of the principal amount.

In addition, Largo is evaluating potential prepayment arrangements associated with its new copper-platinum-group-metal concentrate production, selected higher-margin vanadium sales and sales to electrolyte manufacturers serving the vanadium redox flow battery market. These initiatives are intended to improve working capital efficiency and provide additional sources of near-term liquidity.

Operational update: additional cost and working capital initiatives

Largo's management is renegotiating key supplier and contractor agreements and implementing additional cost reduction measures to mitigate elevated input costs, including diesel and sulphuric acid.

The company is also taking steps to reduce accumulated inventories by temporarily lowering mining rates and processing previously mined stockpiles. As part of this initiative, Largo is renegotiating its mining contracts to align service levels and logistics costs with the adjusted mining plan.

As a result of these measures, the company currently expects 2026 vanadium production to be toward the lower end of its previously announced guidance range. Largo continues to maintain its 2026 production guidance for copper-PGM concentrate.

Commercial update: higher-margin vanadium sales and new copper-PGM revenue

Largo's annual contracting season is under way. The company currently expects high-purity vanadium products to represent a greater proportion of its sales mix in 2027 compared with 2026. Contract negotiations for 2026 were affected by the significant tariffs imposed on Brazilian exports during the second half of 2025.

The first shipment under the company's U.S. Defense Logistics Agency contract is scheduled to arrive at a U.S. port in late September, 2026. This shipment represents an important milestone in Largo's participation in the U.S. defence critical material supply chain and provides a new commercial channel for the company's vanadium products.

Largo has also executed its first sales of copper-PGM concentrate with two trading companies and a European smelter. These initial sales are expected to generate approximately $4.7-million (U.S.) in cash proceeds during September, 2026, providing an additional source of cash generation and establishing revenue stream from a byproduct of the company's vanadium operations.

Jim Bannantine will lead Largo's commercial department levering on experience as a former contracting officer for the U.S. Army Corps of Engineers and given the importance to Largo of its five-year supply contract for high-purity vanadium pentoxide to the U.S. Defense Logistic Agency as well as his experience in the copper and gold industries. Francesco D'Alessio is leaving Largo to take a chief executive officer role. The company thanks Mr. D'Alessio for his work at Largo and wishes him success in his new role.

About Largo Inc.

Largo is the world's largest primary vanadium producer and a globally recognized supplier of high-quality vanadium products, sourced from its world-class Maracas Menchen mine in Brazil. Largo produces critical materials that empower global industries, including steel, aerospace, defence, chemical and energy storage sectors. The company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the clean energy storage sector through its 37.4-per-cent ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the United States.

The company also holds a 100-per-cent interest in the Northern Dancer tungsten-molybdenum property located in the Yukon territory, Canada, and a 100-per-cent interest in the Currais Novos tungsten project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.

Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol LGO.

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